According to sources, Grupo Isolux Corsan SA is close to sell some of its Brazilian power lines to Brookfield Asset Management Inc.
The company has 4,703 kilometers of high-voltage electricity lines under concession in Brazil, including 1,191 kilometers in the Amazon.
This announcement comes after the company selleted Cubico and I Squared as the final bidders in the sale of Isolux's solar power subsidiary T-Solar, which was put up for sale nine months ago.
The Spanish engineering company is going through a financial restructuring and selling assets is a key factor to reduce its debt. The refinancing agreement of Isolux Corsan has been signed by the bondholders and a large majority of creditor banks. Once the deadline for the adhesion expired, the signatories of the agreement represent 89.4% of the financial debt subject to restructuring.
The restructuring plan defines three debt tranches: Tranche A of €200 million (US$222 million),Tranche B of €550 million (US$609 million) and Tranche C of €1,4 billion (US$1,5 billion). These injections will help it to avoid insolvency.